The state says a holding company can financially stay true to its commitment to pay local governments for Foxconn land and amenities. The Wisconsin Economic Development Corporation says S-I-O International Holdings has a net worth of about one-billion dollars — and that’s enough to stand behind Foxconn’s promises. Mount Pleasant and Racine County have agreed to put up 764-million dollars for things like land, streets, and utilities to host Foxconn’s L-C-D screen plant. The state has also approved three-billion dollars in incentives for the Taiwanese company — but that money will generally come after jobs are created, while the local aid covers the upfront costs of the project. Local debt could exceed 300-million dollars by the middle of 2018, before new taxes can help pay the locals back — but in the meantime, the state is backing about 40-percent of the local debt, and S-I-O is guaranteeing up to 135-million for Foxconn’s payments to the county and village.
WEDC: Backer Of Foxconn Payments Can Guarantee Them
Nov 30, 2017 | 7:26 PM
State News